Cranston Inc. reported an impairment loss of $150,000 on
its income statement for the year ended December 31, year 3.
This loss was related to long-lived assets which Cranston intended
to use in its operations. On the company’s December 31, year 3
balance sheet, Cranston reported these long-lived assets at
$920,000 and, as of December 31, year 3, Cranston estimated that
these long-lived assets would be used for another five years. On
December 31, year 4, Cranston determined that the fair values of
its impaired long-lived assets had increased by $25,000 over their
fair values at December 31, year 3. On the company’s December
31, year 4 balance sheet, what amount should be reported as
the carrying amount for these long-lived assets? Assume straightline
depreciation and no salvage value for the impaired assets.